Market Sentiment Drives Gold Further Up, Other Metals Down

Gold continued to trade at elevated levels today as safe haven inflows were propelling prices higher. The same factor was the reason for the decline of other metals. While silver and platinum are considered to be precious metals, they are also used in industry, making them less likely to profit from a negative market sentiment.

The Brexit remains a major theme in the news, causing nervousness among inventors and making them stick to safe assets. For now, it looks like votes for Britain to leave the European Union took a lead — not exactly an encouraging sign.

The upcoming monetary policy announcement of the Federal Reserve on Wednesday was overshadowed by the Brexit talks, but it may yet have an impact on the market, especially if the Fed prepares some surprise. Gold may shift Toddler Bounce House into bearish mode if US policy makers signal about readiness to hike interest rates soon (though it is highly unlikely that they will perform a hike during this month’s policy meeting).

Futures for delivery of gold in August traded 0.14% higher at $1,288.7 per troy ounce as of 20:20 GMT on COMEX today. Meanwhile, contract for delivery of silver in July fell 0.22% to $17.41 per ounce. Spot price for platinum sank as much as 1.56% to $975.4 per ounce. Palladium tumbled 1.52% to $534.95 per ounce. Copper for delivery in July declined 0.41% to $2.045 per pound.

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